The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2019-20.

Nutrient Based Subsidy (NBS) Scheme

The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.

Government is making available fertilizers, Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.

Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea based on the nutrient content present in them.

It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.

In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.

What NBS provides?

The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.

The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.

The NBS ensures that adequate quantity of P&K is made available to the farmers at a statutory controlled price.